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The following describes some major issues addressed in 2010 and 2011 as the RRB continued efforts to improve agency operations and better serve its customers.

Performance Management

Customer Satisfaction Survey

During fiscal year 2010, the RRB began a year-long process to survey visitors to its website (www.rrb.gov).  The approach follows the American Customer Satisfaction Index model designed by the University of Michigan and used in previous surveys of certain agency customer segments.  The survey is being coordinated by ForeSee Results.  Through this initiative, the RRB receives ongoing customer feedback from visitors to the agency website and quarterly summary reports.  To date, satisfaction levels related to the website have compared very favorably to other Federal agencies, particularly those who have similar programs and responsibilities.  One area of emphasis in the customer comments has involved navigation from the home page and within the site.  As a result, the agency implemented various changes to its home page in May 2011 that are consistent with recommendations by ForeSee on this subject.  The website survey is scheduled to continue through July 2011.

Customer Service Plan

The RRB’s Customer Service Plan promotes the principles and objectives of customer-driven quality service throughout the agency. The plan is both open and accountable to the railroad public that the agency serves, and meets objectives of transparency set by the Administration. The plan specifies the level of service customers can expect, measures performance, and obligates the RRB to report annually on its performance. An important part of the plan is to keep customers informed of how well the agency is meeting the standards. The RRB publicizes the plan and performance results and posts them in all of its offices. The plan is reviewed and updated periodically based on agency experience, customer feedback and comparison with similar best-in-business models.
 
The agency has developed an index to measure the overall timeliness of customer service in four benefit areas: retirement applications; survivor applications; disability applications and payments; and railroad unemployment and sickness benefit applications and claims. In addition, a composite indicator, based on a weighted average, allows for a more concise and meaningful presentation of the agency's customer service efforts in these four areas. During fiscal year 2010, the overall benefit timeliness index was 99.3 percent. This means that the RRB provided benefit services within the timeframes promised in the Customer Service Plan 99.3 percent of the time. (The composite for 2009 was 99.2.) In most areas, performance and processing times during fiscal year 2010 met or exceeded the levels in fiscal year 2009. The agency also met or exceeded all but one of its customer service performance goals for the year in its Annual Performance Plan.

Reducing Improper Payments

The RRB reviewed the benefit payments made under the Railroad Retirement Act for fiscal year 2009 as required by the Improper Payments Information Act of 2002.  The agency's Performance and Accountability Report for fiscal year 2010 includes the results of that analysis, along with a description of the actions taken to address and prevent improper payments, and projections of future improper payment levels.  In addition, the RRB updated the fiscal year 2009 information on improper payments, including a breakdown of the causes, over- and underpayment amounts and percentages of improper payments, on the Office of Management and Budget's website.  This analysis shows that the RRB does not have significant improper payments as defined by guidelines for implementing the Improper Payments Information Act of 2002.

In January 2009, the Office of Management and Budget granted relief from reporting improper payments under the Railroad Unemployment Insurance Act due to the consistently low level of error over several years.  Barring any unexpected changes, the next improper payments report for the unemployment program will take place in fiscal year 2012.

The agency continues to review its benefit payment programs to determine if the level of improper payments is significant.  The RRB will also incorporate applicable new requirements of the Improper Payments Elimination and Reduction Act, enacted in July 2010, in the fiscal year 2011 reporting.  In addition, the agency actively looks to identify operational improvements that will minimize improper payments in all areas.

Economic Recovery Activities

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 contained two provisions that affected railroad employees.  This law provided up to 13 weeks of additional temporary extended unemployment benefits for certain workers who received normal unemployment benefits for days between July 1, 2010, and June 30, 2011, and exhausted eligibility for these benefits.  The latest date that an extended benefit period may begin under this law is December 31, 2011.  Previous authorizations for temporary extended unemployment benefits had been contained in the Worker, Homeownership and Business Assistance Act of 2009 and the American Recovery and Reinvestment Act of 2009.  The former provided $175 million for payment of the extended benefits, with the unexpended portion of this money made available for the most recent authorization.

The Tax Relief Act also included a temporary reduction in social security payroll tax for employees, which includes the tier I tax on railroad employees, during calendar year 2011.  The previous overall tax rate was 7.65 percent, which included 6.2 percent for tier I and 1.45 percent for Medicare.  The reduced rate is 5.65 percent, reflecting a reduction of 2 percentage points in the tier I rate, now 4.2 percent, with the Medicare rate still 1.45 percent.  Payroll tax rates on railroad employers remained the same.  The RRB worked closely with the Internal Revenue Service and railroad employers to implement this temporary tax rate reduction.

The American Recovery and Reinvestment Act of 2009 provided for a one-time economic recovery payment of $250 to most railroad retirement beneficiaries.  The RRB received $135 million to fund these payments, most of which were issued in 2009.  However, the agency continued to identify some eligible individuals who had not yet received the payment.  These "catch-up" payments were issued on a quarterly basis, with the final ones taking place in December 2010.  A total of 519,875 railroad retirement beneficiaries received the economic recovery payments.

Service Enhancements

Online Filing of Sickness Claims

In October 2010, the RRB expanded its Internet-based services to include online filing of biweekly claims for sickness benefits. Over 13 percent of sickness claims are currently being filed online. In 2011, the agency will further speed processing by implementing an automated review of “clean claims” that do not require further investigation.

Employer Reporting System

The agency initiated a system conversion of some existing Employer Reporting Systems forms from SAS to ASP.net programming software. While this will not provide any additional services, it will provide a single, more efficient programming platform that will enable development of additional forms in the future.

Medicare Processing Improvements

The RRB continued to participate in a joint workgroup with the Centers for Medicare & Medicaid Services to implement Medicare Parts C and D premium withholding from railroad retirement benefits during fiscal year 2011. In addition, the Patient Protection and Affordable Care Act, enacted in March 2010, provided for an income-related monthly adjustment on Part D prescription drug premiums paid by higher-income beneficiaries, starting in January 2011. This adjustment is similar to a Part B surcharge that has been in place since 2007. Implementation of premium withholding was implemented in June 2011. The RRB started direct billing affected beneficiaries for the monthly adjustment amount in January 2011 and continues work to implement withholding for this portion as well.

Cost-of-Living Adjustment

For the second time since the 1975 implementation of automatic cost-of-living adjustments based on inflation, the RRB did not pay a cost-of-living adjustment in December 2010 because there was not an increase in the Consumer Price Index from the third quarter of 2008 to the third quarter of 2010. Similarly, there was no cost-of-living adjustment in December 2009 because there was no change in the Consumer Price Index from the third quarter of 2008. At the same time, while the standard Medicare Part B premium increased from $110.50 in 2010 to $115.40 in 2011, a “hold harmless” provision exempts most recipients from paying the increased amount if there is no cost-of-living increase in their retirement benefits.

Officials

Michael S. Schwartz continues to serve as Chairman of the Railroad Retirement Board, along with V.M. Speakman, Jr. as Labor Member and Jerome F. Kever as Management Member. Mr. Schwartz was first appointed to the Board in 2003, while Mr. Speakman and Mr. Kever were both appointed in 1992, and are the longest-serving Labor and Management Members in the agency’s history. The agency’s long-time Chief Financial Officer, Kenneth P. Boehne, retired in March 2011 after more than 40 years of Federal service. The Board subsequently appointed George V. Govan as the new Chief Financial Officer. Mr. Govan joined the RRB in April 2011 following his retirement from the U.S. Air Force as a Lieutenant Colonel.

75th Anniversary Observance

The RRB observed the 75th anniversary of the enactment of the Railroad Retirement Act of 1935 in August 2010. Part of President Franklin Roosevelt’s New Deal, this law served as the cornerstone of the present railroad retirement system. Special activities included a display of historical artifacts and memorabilia in the headquarters building and an open house for agency retirees. The culmination of this observance was a special anniversary luncheon at the Drake Hotel on August 27, 2010, with almost 500 attendees comprised primarily of RRB employees and retirees. Guest speakers were Michael J. Ogborn, Chairman of the Board of Directors for the American Short Line and Regional Railroad Association; W. Dan Pickett, President of the Brotherhood of Railroad Signalmen; Edward R. Hamberger, President and Chief Executive Officer of the Association of American Railroads; and Joseph C. Szabo, head of the Federal Railroad Administration. In addition, the guest of honor at the luncheon was Elva Overstreet, a centenarian and annuitant from Chicago whose late husband, Anthony, had been a Pullman porter for most of his railroad career. The agency also hosted a national managers meeting during that week to provide joint training and development for RRB managers from field offices and headquarters.

Headquarters Building

The General Services Administration awarded contracts to renovate the lobby of the RRB’s headquarters building at 844 North Rush Street in Chicago, designating the work as an American Recovery and Reinvestment Act project. Construction started in August 2010 and was completed in March 2011. In 2009, the Congress passed and the President signed a resolution naming the building after William O. Lipinski, a long-time Congressman from the Chicago area with extensive expertise in transportation and railroad issues. Following completion of the lobby renovation, the General Services Administration scheduled a ceremony in June 2011 to formally dedicate the
William O. Lipinski Federal Building.

Workforce Management

Staffing/Training

The RRB has made significant progress in terms of hiring for entry-level positions. This is consistent with the agency’s human capital and succession planning documents. Given limited funding levels, the agency has managed to accomplish this by relying on attrition and retirements to bring new people into the workforce and position the agency to continue providing outstanding customer service into the future. In 2010, this included training classes for new claims examiners in the area of initial applications for retirement and survivor benefits, and another for unemployment and sickness insurance claims. The agency also instituted two new enhanced training programs for post-adjudication examiners in both retirement and survivor claims. A third training program implemented for Medicare claims examiners will help our customers receive Medicare benefits in a more timely and efficient manner. Finally, the RRB completed training for new claims representatives in its 53 field offices, and refresher training for experienced representatives, to enable our employees who have direct customer contact to provide the highest possible level of service.

Hiring Reform

The RRB made continued progress in fulfilling the requirements of the Administration’s initiative to reform the hiring process. Accomplishments included identifying areas of specialized need within the agency workforce and providing a request for assistance with these needs to the Office of Personnel Management. The RRB also developed a hiring reform action plan and implementation checklist, and streamlined the application process by allowing people to apply for jobs with a cover letter and resume, eliminating essay-style questions as part of the initial application, and making selections using a category-rating approach.

Employee Survey

The Office of Personnel Management conducts the Federal Employee Viewpoint Survey, formerly known as the Federal Human Capital Survey, to identify the extent to which employees identify the characteristics of successful organizations within their own agency. In reviewing the survey results for RRB employees, the agency’s human resources staff noted that the overall responses were very positive. The agency scored particularly well on the majority of questions dealing with personal work experiences. At the same time, RRB staff noted room for improvement in the areas of performance culture and job satisfaction. After identifying specific areas in which scores declined from the previous surveys or did not compare favorably to other agencies, the RRB developed an action plan and submitted it to the Office of Personnel Management. In the coming years, the agency intends to improve training capabilities and dealing with poor performance in a more effective manner.

Employee Recognition

The RRB administers an Awards for Excellence program to recognize outstanding agency employees, and also participates in the Chicago Federal Executive Board’s Federal Employee of the Year awards program. The latter program recognizes outstanding Federal employees from throughout the metropolitan area, and is held in conjunction with Public Service Recognition Week each spring. At the 2010 awards luncheon, the RRB had five nominees selected as finalists in their respective categories, with two winners of the coveted award. The agency’s occupational health nurse, Pauline Kuebler, R.N., was honored as the Worksite Wellness Champion, and the Sickness and Unemployment Benefits Section Customer Service Group was recognized as the Outstanding Team.

Benefits Administration

Same-sex domestic partners of RRB employees are now eligible to apply for coverage under the Federal Long Term Care Insurance Program. This is consistent with recent regulatory changes published in the Federal Register that expanded the definition of “qualified relative” to include same-sex domestic partners of eligible Federal employees and annuitants. In addition to long-term care insurance, RRB staff determined that same-sex domestic partners can avail themselves of some other benefits offered to agency employees, including the employee assistance program, child-care tuition assistance, and expanded family and medical leave.

Information Technology

RRBVision

The RRB uses a system called RRBVision that allows users to view video presentations with accompanying training materials, such as PowerPoint presentations or online screens. Presentations can be viewed in real-time or saved for later viewing. In 2011, the agency completed work on a new video production studio in its headquarters building that will facilitate creation of training programs with a more professional appearance. In 2010, the RRB developed 35 presentations for viewing by employees on the agency intranet. Topics included technical training for claims examiners/representatives, non-technical training sessions, and presentations from the RRB’s Office of Equal Opportunity. The benefits of RRBVision include increased consistency in training, greater availability of training programs to offsite staff, on-demand accessibility, and savings in travel costs. RRBVision also offers programs for the railroad public that can be accessed through the RRB’s website.

Records Storage/Accessibility

The RRB completed the transfer of more than 1,400,000 inactive Railroad Retirement Act claim folders to the National Archives and Records Administration (NARA). The initiative included the development of an electronic finding aid by RRB staff that allows NARA employees to more easily locate individual folders within the 52,000 cubic feet of transferred records. The material is also available to genealogical researchers. The transfer of records will result in recurring savings to the RRB of about $135,000 annually.

Software Management

As a result of an ongoing RRB effort to evaluate computer software for effectiveness and efficiency, the agency replaced its mainframe software tools in October 2010. This resulted in annual savings of more than $60,000, and an additional $139,000 when the mainframe is upgraded.

Office of Equal Opportunity

Diversity Program

Throughout the year, the agency’s Office of Equal Opportunity sponsored many events and activities to foster a diverse work environment and enhance the understanding of disability issues. This included several cultural enrichment and commemorative events presented by the RRB’s Workplace Diversity Committee, and informational sessions on various topics by the Employees with Disabilities Advisory Council.

Equal Opportunity Policy and Procedures

The agency’s equal employment opportunity (EEO) complaint program meets all elements necessary to achieve a discrimination-free work environment. All employees received training on their rights and remedies under the No FEAR Act, Title VII and other antidiscrimination laws, with specialized training provided to managers and supervisors. The agency has policies and procedures to address all forms of EEO complaints including harassment, as well as procedures to respond to requests for reasonable accommodation. In addition to an EEO handbook, the RRB also posts relevant information on the agency intranet and the public website.

Recruitment

As part of the agency’s commitment to a diverse workforce, the Office of Equal Opportunity worked with the Bureau of Human Resources to create a diverse pool of external job applicants by identifying recruitment sources for individuals with disabilities, various underrepresented groups, and disabled veterans.

Public Information Activities

The RRB maintains direct contact with railroad retirement beneficiaries through its field offices located across the country. Field personnel explain benefit rights and responsibilities on an individual basis, assist railroad employees in applying for benefits and answer any questions related to the benefit programs. The RRB also relies on railroad labor groups and employers for assistance in keeping railroad personnel informed about its benefit programs.

At informational conferences sponsored by the Labor Member of the Railroad Retirement Board for railroad labor union officials, RRB representatives describe and discuss the benefits available under the railroad retirement-survivor, unemployment-sickness and Medicare programs, and the attendees are provided with comprehensive informational materials. Now in its 54th year, in 2010 a total of 1,560 railroad labor union officials attended 35 informational conferences held in cities throughout the United States. In addition, railroad labor unions frequently request that RRB representatives speak before their meetings, seminars and conventions. In 2010, the Labor Member’s Office was represented at nine union gatherings attended by 2,101 railroad labor officials. Field personnel addressed 93 local union meetings with 5,760 members in attendance.

At seminars for railroad executives and managers, RRB representatives review programs, financing, and administration, with special emphasis on those areas which require cooperation between railroads and RRB offices. During 2010, the Management Member’s Office conducted three seminars for 160 railroad officials, as well as pre-retirement counseling seminars attended by railroad employees and their spouses, and benefit update presentations.

Office of Inspector General

The Office of Inspector General for the RRB focuses its audit and investigative efforts on protecting the integrity of the agency’s trust funds by providing comprehensive program and operational oversight. During fiscal year 2010, in accordance with the Government Performance and Results Act of 1993, the Office of Inspector General adopted a new strategic plan which establishes three strategic goals: (1) add value to the RRB’s programs and operations; (2) protect the integrity of RRB programs, operations, and trust funds; and (3) ensure quality and excellence in Office of Inspector General work and products. The full text of the plan, and other documents referenced within this section, can be accessed at www.rrb.gov/oig.

Audit Activity

During fiscal year 2010, auditors completed 13 audits and issued findings and recommendations to agency management, including their opinion and related reports on the RRB’s financial statements for fiscal years 2008 and 2009. In connection with the financial statement audit, the Inspector General issued a document that identified the most serious management challenges facing the RRB and progress in addressing them. This document was prepared pursuant to the Reports Consolidation Act of 2000 and the requirements of Office of Management and Budget Circular A-136. The Inspector General identified oversight for invested program assets, prevention of fraud and abuse in the occupational disability program, the integrity of the railroad Medicare program, security and privacy of information, accurate and reliable financial accounting and reporting, and prevention/detection of improper payments as the most serious challenges facing the agency.

Additionally, auditors completed their annual evaluation of the agency's information security program, including progress in implementing the Federal Information Security Management Act of 2002 requirements, examined the RRB’s compliance with the American Recovery and Reinvestment Act of 2009, and contracted for audits of the financial interchange with social security. They also audited internal controls over Medicare premium transfers between the agency and the Centers for Medicare & Medicaid Services, unilateral disability freeze determinations, the account benefits ratio, and railroad Medicare services billed after a beneficiary’s date of death.

Criminal Investigations